Tenet Loses $6M in 2Q Due to Impairment Charges

Although adjusted admissions, surgeries and emergency department visits increased in the second quarter of 2012 for Tenet Healthcare (pdf), the Dallas-based for-profit hospital operator posted a $6 million loss, reflecting impairment and restructuring charges.

The impairment charges totaled $100 million and were related to the anticipated sale of Creighton University Medical Center in Omaha, Neb.

Tenet President and CEO Trevor Fetter said in a news release that although the second quarter produced a loss on the bottom line, the company's results exceeded expectations and "strong performance was driven by growth in patient volumes and revenues."

Net operating revenue totaled $2.27 billion in the second quarter, a 6.3 percent increase from $2.13 billion last year. Adjusted EBITDA in the second quarter reached $288 million, an increase of 13 percent compared with $275 million last year.

Tenet's adjusted admissions increased by 1.5 percent, the seventh consecutive quarter of positive adjusted admissions growth. Surgeries grew by 4.9 percent in the second quarter, and several service lines lead to that growth, including trauma, neurosurgery, thoracic surgery, vascular surgery and others. Emergency department visits increased 5 percent.

For the six month months ended June 30, 2012, Tenet posted a profit of $52 million, down compared with last year's six-month total of $128 million. Net revenue for the first six months increased 4.2 percent, from $4.38 billion in 2011 to $4.57 billion this year.

More Articles on Tenet Healthcare:

Tenet Signs 4-Year, National Agreement With Humana

Tenet Plans $110M Expansion of St. Christopher's Hospital for Children in Philadelphia

South Fulton Medical Center to Lay Off 80 Workers

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